- The European Court of Justice ruled that auctioning goods given as collateral by a credit provider is not an additional service compared to the main service of providing credit
- The auctioning activities do not share the same VAT treatment as the main service of providing credit
- Companhia União de Crédito Popular SA provides loans secured by movable goods, with a VAT exemption for credit activities
- The Portuguese tax authority argued that sales commissions from auctions are not part of the main service of providing credit and therefore not VAT exempt
- The European Court of Justice emphasized that auctioning collateral goods is not a usual result of providing a loan with collateral
- The case was brought before the European Court of Justice by the Portuguese court after a dispute between Companhia União de Crédito Popular SA and the tax authority.
Source: taxlive.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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